SpaceX recorded an unrealised investment gain of $561 million from its stake in Elon Musk’s The Boring Company during the third quarter of 2026, highlighting the financial impact of rising valuations across the billionaire entrepreneur’s business empire. According to SpaceX’s quarterly filing with the US Securities and CNBC Africa, the gain followed a new funding round completed by the tunnelling company in September. The revaluation contributed to SpaceX’s other income and helped lift its third-quarter net income to approximately $4.4 billion. However, the gain was unrealised, meaning it reflected an increase in the estimated value of SpaceX’s investment rather than cash generated from a sale. The filing places the transaction within SpaceX’s broader investment portfolio, which was valued at $653 million at the end of September, compared with $101 million at the close of 2025.
The valuation increase followed The Boring Company’s $3 billion funding round in September, which valued the tunnelling venture at $23 billion. Reuters reported that the round was led by the United Arab Emirates and affiliated investment entities, with participation from investors including Sequoia Capital, Andreessen Horowitz, Vy Capital and Valor Equity Partners. Founded in 2017 within SpaceX before becoming a separate company in 2018, The Boring Company aims to reduce urban congestion through underground transport networks. Its projects include the Las Vegas Convention Center Loop, alongside planned developments in Nashville and the United Arab Emirates. The company intends to use its latest funding to expand its engineering and operational capacity and advance underground infrastructure projects, including a proposed network extending more than 150 kilometres across the UAE.
The gain underscores how private-company valuations can influence reported earnings even when no investment has been sold and no cash has changed hands. SpaceX measures its stake in The Boring Company using a fair-value approach informed by observable market transactions, allowing new financing rounds to affect the recorded value of its holding. The relationship also illustrates the financial connections between Musk’s companies, although SpaceX’s filing states that it has significant influence rather than control over The Boring Company. Beyond the investment gain, SpaceX reported purchasing $151 million worth of Tesla Megapack energy-storage systems during the quarter, another example of commercial activity across businesses associated with Musk. For investors and industry observers, the key distinction is between accounting gains driven by valuation changes and the recurring operating income generated by a company’s core activities.
